CONFEDERATION OF A.C.T INDUSTRY TRADING AS ACT & REGION CHAMBER OF COMMERCE AND INDUSTRY ABN FINANCIAL REPORT

Transcription

1 CONFEDERATION OF A.C.T INDUSTRY TRADING AS ACT & REGION CHAMBER OF COMMERCE AND INDUSTRY FINANCIAL REPORT FOR THE YEAR ENDED 31 MARCH 2015

2 BOARD REPORT Your Board Members submit the financial report of the ACT & Region Chamber of Commerce and Industry for the financial year ended 31 March Committee Members The names of council members and changes to the composition of the Board throughout the year and at the date of this report are: Position Name Appointed Date Resignation Date Chairman Mr Greg Castle 25 th March 2015 Chairman Mr Julian Barrington-Smith 29 th August 2014 Deputy Chairman Ms Louise Hughes 29 th August 2014 Chairman Mike Zissler 25 th March 2015 Deputy Chairman Ms Kathy Kostyrko 29 th August 2014 Board Member Ms Maureen Cane Board Member Mr Michael Linke Board Member Mrs Laurie McDonald Board Member Mr Chris Taylor Principal Activities The principal activities of the Organisation during the financial year were to provide support for employers and the promotion and support of commerce and industry within the Australian Capital Territory and the surrounding region. However, following the members approving in June 2014 the coming together of Canberra Business Council and the Confederation of ACT Industry t/as ACT & Region Chamber of Commerce to form Canberra Business Chamber effective 1 October 2014, the focus of its principal activities shifted to that of transferring all operations to the new entity and begin the process of winding down the entity. Significant Changes Simultaneously with a vote of members of the Confederation of ACT Industry T/as ACT & Region Chamber of Commerce & Industry, Canberra Business Council approved the dissolution of the organisation and the formation of a new organisation to be called Canberra Business Chamber. All operations, obligations, proceeds from the sale of assets and membership of both organisation transferred to the Canberra Business Chamber as of 1 October 2014 or in the case of building assets, when legally possible. As a result the new organisation commenced its operations from 1 October 2014, with the two previous entities ceasing to trade and changing the principal activities from this date. Operating Result The loss of the Organisation for the financial year after providing for income tax amounted to 195,408 (2014: loss 149,686).

3 Members Information ACT & REGION CHAMBER OF COMMERCE AND INDUSTRY The number of members at the end of the financial year was 680 members. No member or officer of the Chamber is a trustee of a superannuation entity as a result of being a member or officer of the Chamber. Members retain the right to resign from the Chamber in accordance with Section 10 of the Chamber rules.

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6 STATEMENT OF COMPREHENSIVE INCOME Note Other revenue 2 1,289,185 2,177,807 Administrative expense (114,767) (210,141) Employee benefits expense (486,114) (799,956) Motor vehicle expenses (3,363) (19,074) Government program expenses (713,425) (1,032,147) Member events (43,559) (69,051) Communications (13,372) (21,372) Printing & stationery (3,672) (15,837) Computer software & support (7,964) (25,335) Meeting expenses (1,679) (4,022) Capitation fees - (59,028) Subscriptions (31,324) (1,300) Depreciation expense (22,212) (39,253) Finance costs (43,142) (30,977) Profit / (loss) before income tax 3 (195,408) (149,686) Income tax expense - - Comprehensive income Revaluation of fixed assets - 28,138 Total comprehensive income (195,408) (121,548) The accompanying notes form part of the of financial statements 6

7 BALANCE SHEET AS AT 31 MARCH 2015 Note ASSETS CURRENT ASSETS Cash and cash equivalents 5-457,612 Trade and other receivables 6 3,762 74,424 Other assets 7 40,833 2,283 TOTAL CURRENT ASSETS 44, ,319 NON-CURRENT ASSETS Property, plant and equipment 8 985,000 1,035,432 Intangible assets TOTAL NON-CURRENT ASSETS 985,000 1,035,992 TOTAL ASSETS 1,029,595 1,570,311 LIABILITIES CURRENT LIABILITIES Trade and other payables 9 137, ,341 Borrowings , ,343 Employee benefits 11 45,929 83,198 Other liabilities 12 8, ,428 TOTAL CURRENT LIABILITIES 875,244 1,208,310 NON-CURRENT LIABILITIES Borrowings 10-12,242 TOTAL NON-CURRENT LIABILITIES - 12,242 TOTAL LIABILITIES 875,244 1,220,552 NET ASSETS 154, ,759 EQUITY Reserves 1,058,773 1,058,773 Retained earnings (904,422) (709,014) 154, ,759 TOTAL EQUITY 154, ,759 The accompanying notes form part of the of financial statements 7

8 STATEMENT OF CHANGES IN EQUITY Asset Retained Earnings Revaluation Reserve Total Balance at 1 April 2013 (559,328) 1,030, ,307 Loss attributable to members of the entity (149,686) - (149,686) Revaluation of fixed assets - 28,138 28,138 Balance at 31 March 2014 (709,014) 1,058, ,759 Loss attributable to members of the entity (195,408) - (195,408) Balance at 31 March 2015 (904,422) 1,058, ,351 The accompanying notes form part of the of financial statements 8

9 STATEMENT OF CASH FLOWS Note CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 1,199,788 2,177,883 Payments to suppliers and employees (1,605,215) (2,512,717) Interest received 3,721 8 Interest paid (43,142) (30,977) Net cash used in operating activities 14 (444,848) (365,803) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment - (2,482) Net cash used in investing activities - (2,482) CASH FLOWS FROM FINANCING ACTIVITIES Repayment of borrowings (24,653) (18,332) Proceeds from borrowings 7, ,000 Net cash provided by financing activities (16,916) 196,668 Net increase / (decrease) in cash held (461,764) (171,617) Cash at the beginning of the year 416, ,915 Cash at the end of the year 5 (45,466) 416,298 The accompanying notes form part of the of financial statements 9

10 Note 1: Statement of Significant Accounting Policies The financial statements cover the Confederation of ACT Industry trading as the ACT & Region Chamber of Commerce and Industry (the Organisation) as an individual entity. Basis of Preparation The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards, (including Australian Accounting Interpretations). The entity is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards. Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions to which they apply. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless stated otherwise. The financial statements, except for the cash flow information, have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. The amounts presented in the financial statements have been rounded to the nearest dollar. Going concern The financial statements have been prepared on the going concern basis, which contemplates continuity of normal business activities and the realisation of assets and discharge of liabilities in the normal course of business. As disclosed in the financial statements, the entity incurred a loss of 195,408 for the current financial year ended 31 March 2015 (2014: 149,686) and had net cash outflows from operating activities of 444,848 for the current financial year ended 31 March Simultaneously with a vote of members of the Confederation of ACT Industry T/as ACT & Region Chamber of Commerce & Industry, Canberra Business Council approved the dissolution of the organisation and the formation of a new organisation to be called Canberra Business Chamber. All operations, obligations, proceeds from the sale of assets and membership of both organisation transferred to the Canberra Business Chamber as of 1 October 2014 or in the case of building assets, when legally possible. As a result the new organisation commenced its operations from 1 October 2014, with the two previous entities ceasing to trade and changing the principal activities from this date. The primary activity, since the establishment of the new entity of the chamber is the leasing of its premises. The current rent received is sufficient to cover the outgoing for the building. Accordingly the Directors believe that the economic entity will be able to continue as a going concern and that it is appropriate to adopt the going concern basis in the preparation of the financial report. The financial report does not include any adjustments relating to the amounts or classification of recorded assets or liabilities that might be necessary if the economic entity does not continue as a going concern. 10

11 Note 1: (a) Statement of Significant Accounting Policies (continued) Income Tax The Chamber is exempt from income tax in accordance with the provision of Section 50 of the Income Tax Assessment Act (b) Property, Plant and Equipment Each class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses. Plant and equipment Plant and equipment are measured on the cost basis. The carrying amount of plant and equipment is reviewed annually by the board to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the assets employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts. Depreciation The depreciable amount of all fixed assets, excluding freehold land, is depreciated on a reducing balance basis over the assets useful life commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements. The depreciation rates used for each class of depreciable assets are: Class of Fixed Asset Depreciation Rate Buildings 2.5% Plant and Equipment 10-40% Leased plant & equipment 20% Other property, plant & equipment 10% The assets residual values and useful lives are reviewed and adjusted, if appropriate, at each balance date. An asset s carrying amount is written down immediately to its recoverable amount if the asset s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in profit or loss. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings. 11

12 Note 1: Statement of Significant Accounting Policies (Continued) (c) Leases Leases of fixed assets, where substantially all the risks and benefits incidental to the ownership of the asset (but not the legal ownership) are transferred to the company, are classified as finance leases. Finance leases are capitalised by recognising an asset and a liability at the lower of the amounts equal to the fair value of the leased property or the present value of the minimum lease payments, including any guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period. Leased assets are depreciated on a straight-line basis over the shorter of their estimated useful lives or the lease term. Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are recognised as expenses on a straight-line basis over the lease term. (d) Financial Instruments Initial recognition and measurement Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the Organisation commits itself to either purchase or sell the asset (ie trade date accounting is adopted). Financial instruments are initially measured at fair value plus transaction costs except where the instrument is classified at fair value through profit or loss, in which case transaction costs are expensed to profit or loss immediately. Classification and subsequent measurement Financial instruments are subsequently measured at fair value, amortised cost using the effective interest method, or cost. Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted. (i) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised. (ii) Financial Liabilities Non-derivative financial liabilities other than financial guarantees are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial liability is derecognised. 12

13 Note 1: Statement of Significant Accounting Policies (Continued) Impairment At the end of each reporting period, the Organisation assesses whether there is objective evidence that a financial asset has been impaired. A financial asset or a group of financial assets is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events (a loss event ) that has occurred, which has an impact on the estimated future cash flows of the financial assets. Derecognition Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the Organisation no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expire. The difference between the carrying value of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed is recognised in profit of loss. (e) Impairment of Assets At the end of each reporting period, the Organisation assesses whether there is any indication that an asset may be impaired. The assessment will consider both external and internal sources of information. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of that asset, being the higher of the asset s fair value less costs to sell and its value-in-use, to the asset s carrying amount. Any excess of the asset s carrying amount over its recoverable amount is immediately recognised in profit or loss. Where it is not possible to estimate the recoverable amount of an individual asset, the Organisation estimates the recoverable amount of the cash-generating unit to which the asset belongs. (f) Employee Benefits Provision is made for the Organisation s liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may not satisfy any vesting requirements. Those cash outflows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cash flows. (g) Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits held at-call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the statement of financial position. 13

14 Note 1: (h) Statement of Significant Accounting Policies (Continued) Revenue and Other Income The Organisation recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the Organisations activities as discussed below. Revenue is measured at the fair value of the consideration received or receivable after taking into account any trade discounts and volume rebates allowed. Any consideration deferred is treated as the provision of finance and is discounted at a rate of interest that is generally accepted in the market for similar arrangements. The difference between the amount initially recognised and the amount ultimately received is interest revenue. Grant revenue Government program revenue is recognised in the statement of comprehensive income when the organisation obtains control of the grant and it is probable that the economic benefits gained from the grant will flow to the organisation the amount of the program can be measured reliably and the key service conditions have been met. When program revenue is received whereby the organisation incurs an obligation to deliver economic value directly back to the contributor, this is considered a reciprocal transaction and the grant revenue is recognised in the statement of financial position as a liability until the service has been delivered to the contributor, otherwise the grant is recognised as income on receipt. Interest Revenue Interest revenue is recognised using the effective interest method, which for floating rate financial assets is the rate inherent in the instrument. Dividend revenue is recognised when the right to receive a dividend has been established. Subscriptions Revenue from the provision of membership subscriptions is recognised in the financial period in which the annual membership commences or is entitled to be renewed. All revenue is stated net of the amount of goods and services tax (GST). 14

15 Note 1: Statement of Significant Accounting Policies (Continued) (i) Trade and Other Receivables Trade and other receivables include amounts due from customers for goods sold and services performed in the ordinary course of business. Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets. All other receivables are classified as non-current assets. Trade and other receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any provision for impairment. (j) Trade and Other Payables Trade and other payables represent the liabilities for goods and services received by the entity that remain unpaid at the end of the reporting period. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability. (k) Borrowing Costs Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take a substantial period of time to prepare for their intended use or sale are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised in income in the period in which they are incurred. (l) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to, the ATO are presented as operating cash flows included in receipts from customers or payments to suppliers. (m) Comparative Figures When required comparative figures have been adjusted to conform to changes in presentation for the current financial year. 15

16 Note 1: Statement of Significant Accounting Policies (Continued) (n) Critical Accounting Estimates and Judgements The Board evaluates estimates and judgments incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the organisation. Key estimates impairment The organisation assesses impairment at the end of each reporting period by evaluating the conditions and events specific to the company that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed using value-in-use calculations which incorporate various key assumptions. Key judgements provision for impairment of receivables The value of the provision for impairment of receivables is estimated by considering the ageing of receivables, communication with the debtors and prior history. 16

17 Note 2: Revenue Revenue from continuing operations Other revenue - Interest income 3, Subscriptions 358, ,661 - Grant program income 700,217 1,025,924 - Rent & reimbursements 129, ,642 - Member events 42, ,176 - Workplace relations income 36,795 67,230 - Other income 18,017 22,165 Total Revenue 1,289,185 2,177,807 Note 3: Profit The following significant revenues / (expenses) are relevant in explaining the financial performance: Subscriptions 358, ,661 Grant program income 700,217 1,025,924 Staff costs (486,114) (799,956) Grant program expenses (713,425) (1,032,147) Depreciation (22,212) (39,253) Note 4: Remuneration of Auditors -auditing or reviewing financial statements 14,200 9,000 14,200 9,000 Note 5: Cash and Cash Equivalents Cash on hand Cash at bank - 457, ,612 Reconciliation of cash Cash at the end of the financial year as shown in the statement of cash flows is reconciled to items in the balance sheet as follows: Cash and cash equivalents - 457,612 Bank overdrafts (45,466) (41,314) (45,466) 416,298 17

18 Note 6: Trade and Other Receivables Trade receivables 3,762 8,129 Subscription debtors - 66,295 3,762 74,424 Note 7: Other Assets Prepayments 4,778 2,283 Related entity loan(s) 36,055-40,833 2,283 Note 8: Property, Plant and Equipment LAND AND BUILDINGS Freehold land At Independent valuation 400, ,000 Total land 400, ,000 Buildings At independent valuation 600, ,000 Accumulated depreciation (15,000) - Total building 585, ,000 Total land and buildings 985,000 1,000,000 PLANT AND EQUIPMENT Office equipment At cost - 239,261 Accumulated depreciation - (203,962) Total office equipment - 35,299 Other plant & equipment At cost - 18,961 Accumulated depreciation - (18,828) Total other plant and equipment Total plant and equipment - 35,432 Total property, plant and equipment 985,000 1,035,432 (a) Asset revaluations The land and buildings were revalued at 31 March 2014 by an independent valuer Gunnar Sirel FAPI of Colliers International Consultancy and Valuation Pty Limited, a registered valuer in NSW. The valuation methodology used was the capitalisation of net income where net income is capitalised at a reversionary yield of 8.5% for the duration of the crown lease term. The revaluation surplus was credited to the asset revaluation reserve in equity. In the year ended 31 March 2015, asset revaluations were reviewed and it was considered that there were no material changes to the 31 March 2014 valuations. 18

19 Note 8: Property, Plant and Equipment (Continued) (b) Movements in carrying amounts Land Buildings Office Plant & Total equipment equipment Balance at the beginning of the year 400, ,000 35, ,035,432 Disposal - - (28,220) - (28,220) Depreciation expense - (15,000) (7,079) (133) (22,212) Balance at 31 March , , , Note 9: Trade and Other Payables Current Trade payables 68,919 22,434 Sundry payables and accrued expenses 68,720 93, , ,341 Note 10: Borrowings Current Bank overdraft 45,466 41,314 Bills of exchange and promissory notes 623, ,000 Other financial liabilities 14,600 19,029 Total current borrowings 683, ,343 Non Current Other financial liabilities - 12,242 Total non-current borrowings - 12,242 Total borrowings 683, ,585 Note 11: Employee Benefits Provision for annual leave 8,430 51,944 Provision for long service leave 16,599 24,523 Provision for redundancy 20,900 6,731 45,929 83,198 Note 12: Other Liabilities Government grants in advance - 360,428 Related entity loan(s) 8,610-8, ,428 19

20 Note 13: Capital and Leasing Commitments (a) Finance lease commitments Payable minimum lease payments: - no later than 1 year 12,242 20,985 - between 1 year and 5 years - 12,242 Minimum lease payments 12,242 33,227 Less: finance charges (294) (1,956) Present value of minimum lease payments 11,948 31,271 Finance leases are in place for new computer equipment and term of 3 years. Note 14: Cash Flow Information Reconciliation of cash flow with profit Profit / (loss) (195,408) (149,686) Cash flows excluded from profit attributable to operating activities Non-cash flows in profit - Depreciation 22,772 39,253 Changes in assets and liabilities: - (Increase) / decrease in trade receivables (134,457) 26,203 - (Increase) / decrease in prepayments (2,495) (Decrease) / increase in income in advance (360,428) (243,899) - (Decrease) / increase in payables 262,437 (92,932) - (Decrease) in employee benefits (37,269) 54,477 Net cash provided by / (used in) operating activities 444, ,803 Note 15: Financial Risk Management Financial Risk Management Policies The main risks the Organisation is exposed to through its financial instruments are credit risk, liquidity risk and market risk consisting of interest rate risk, foreign currency and equity price risk. The Organisation s financial instruments consist mainly of deposits with banks, local money market instruments, short-term investments, accounts receivable and payable, bank loans and overdrafts, loans to and from subsidies, bills and leases. The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements, are as follows: 20

21 Note 15: Financial Risk Management (continued) Financial assets Cash and cash equivalents - 457,612 Receivables 3,762 74,424 3, ,036 Financial liabilities Financial liabilities at amortised cost - Trade and other payables 137, ,341 - Borrowings 683, , , ,926 The Board has overall responsibility for the establishment of the organisation s financial risk management framework. This includes the development of policies and future cash flow requirements. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Organisation s activities. Mitigation strategies for specific risks are described below. a. Credit risk Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract obligations that could lead to a financial loss to the Organisation. Credit risk is managed through maintaining procedures ensuring, to the extent possible, that members and counterparties to transactions are of sound credit worthiness. Such monitoring is used in assessing receivables for impairment. Risk is also minimised through investing surplus funds in financial institutions that the Board has cleared as being financially sound. Credit risk exposures The maximum exposure to credit risk by class of recognised financial assets at balance date is equivalent to the carrying value and classification of those financial assets (net of any provisions) as presented in the statement of financial position. The Organisation has no significant concentration of credit risk with any single counterparty or group of counterparties. Details with respect to credit risk of Trade and Other receivables are provided in note 6. 21

22 Note 15: Financial Risk Management (Continued) b. Liquidity risk Liquidity risk arises from the possibility that the Organisation might encounter difficulty in settling its debts or otherwise meeting its obligations related to financial liabilities. The Organisation manages this risk through the following mechanisms: Preparing forward-looking cash flow analysis in relation to its operational, investing and financial activities which are monitored on a monthly basis; Monitoring undrawn credit facilities; Obtaining funding from a variety of sources; Maintaining a reputable credit profile; Managing credit risk relating to financial assets; Only investing surplus cash with major financial institutions; and Comparing the maturity profile of financial liabilities with the realisation profile of financial assets. Typically the Organisation ensures that it has sufficient cash on demand to meet expected operational expenses for a period of 60 days. The following tables reflect an undiscounted contractual maturity analysis for financial liabilities. Financial guarantee liabilities are treated as payable on demand since the Organisation has no control over the timing of any potential settlement of the liabilities. The timing of cash flows presented in the table to settle financial liabilities reflects the earliest contractual settlement dates and does not reflect management s expectations that banking facilities will be rolled forward. The amounts disclosed in the table are the undiscounted contracted cash balances and therefore the balances in the table may not equal the balances in the statement of financial position due to the effect of discounting. 22

23 Note 15: Financial Risk Management (Continued) a. Liquidity risk (continued) Within 1 Year 1 to 5 Years Total contractual cash flow Financial liabilities due for payment Bank overdraft and loans 57,708 62,299-12,242 57,708 74,541 Bills of exchange and promissory notes 623, , , ,000 Trade and other payables 137, , , ,341 Total contractual outflows 818, ,640-12, , ,882 The timing of expected outflows is not expected to be materially different from contracted cash flows. Financial Assets pledged as collateral Certain financial assets have been pledged as security for debt and there realisation into cash may be restricted subject to terms and conditions attached to the relevant debt contracts. c. Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. i) Interest rate risk Exposure to interest rate risk arises on financial assets and financial liabilities recognised at the end of the reporting period, whereby a future change in interest rates will affect future cash flows or the fair value of fixed rate financial instruments. The Organisation is also exposed to earnings volatility on floating rate instruments. ii) Price risk Price risk relates to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices of securities held being available for sale or fair value through profit and loss. Such risk is managed through diversification of investments across industries and geographic locations. d. Price risk The Organisation is not exposed to any material commodity price risk. 23

24 Note 15: Financial Risk Management (Continued) Net Fair Values Fair value estimation The fair values of financial assets and financial liabilities approximate their carrying values as presented in the statement of financial position. Fair values are those amounts at which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm s length transaction. Fair values derived may be based on information that is estimated or subject to judgement, where changes in assumptions may have a material impact on the amounts estimated. Areas of judgement and assumptions have been detailed below. Where possible, valuation information used to calculate fair value is exacted from the market, with more reliable information available from markets that are actively traded. In this regard, fair values for listed securities are obtained from quoted market bid prices. Where securities are unlisted and no market quotes are available, fair value is obtained using discounted cash flow analysis and other valuation techniques commonly used by market participants. Sensitivity analysis Interest rate risk The Organisation has performed a sensitivity analysis relating to its exposure to interest rate risk at balance date on borrowings. This sensitivity analysis demonstrates the effect on current year results which could result from a change in this risk variable. As at 31 March 2015, the effect on profit as a result of changes in the interest rate, with all other variables remaining constant, would be as follows: /- 1% in interest rates +/- 6,831 +/- 6,606 This sensitivity analysis has been performed on the assumption that all other variables remain unchanged. 24

25 Note 16: Key Management Personnel (KMP) Compensation 2015 Short-term Benefits Post- employment Benefits Total Total compensation 53, , , Total compensation 105,040 9, ,756 Note 17: Events after the Balance Sheet Date With the exception of a Put and Call for the sale of the building and deregistration from FairWork, the director are not aware of any other significate changes. Note 18: Organisation Details The principal place of business of the Organisation is: The registered office of the Chamber is: Ground Floor, 216 Northbourne Ave BRADDON ACT 2612 AUSTRALIA 25

26 INDEPENDENT AUDITOR S REPORT TO THE MEMBERS OF ACT & REGION CHAMBER OF COMMERCE AND INDUSTRY We have audited the accompanying financial report of the ACT & Region Chamber of Commerce and Industry ( the entity ), which comprises the balance sheet as at 31 March 2015, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the Board members declaration. Board s Responsibility for the Financial Report The Board is responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards, and for such internal control as the Board determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error Auditor s Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

27 Independence In conducting our audit, we have complied with the independence requirements of the Australian professional accounting bodies. Opinion In our opinion the financial report presents fairly, in all material respects, the financial position of the ACT & Region Chamber of Commerce and Industry as at 31 March 2015 and it s financial performance and cash flows for the year then ended in accordance with Australian Accounting Standards. RSM AUSTRALIA PTY LTD Canberra ACT Dated: 13 April 2016 Rodney Miller Director